DHL Express, one of the world’s leading logistics company is set to invest Euro 17 million for its facility upgrade and shipment handling systems in sub-Saharan Africa in 2015.
The announcement comes in the wake of a visit to South Africa and Nigeria by Frank Appel, the Chief Executive Officer of Deutsche Post DHL Group this week.
“Today, emerging market revenues contribute over 20 percent to Deutsche Post DHL Group’s revenues, but by 2020 the Group expects this figure to climb to 30 percent. Therefore, we will continue to concentrate on organic growth by investing into promising present and future markets. DHL already has a strong footprint in Africa, but we see some excellent opportunities to further increase our presence in the Sub-Saharan region. South Africa’s exceptional geographic location as the gateway to Africa, and Nigeria’s growing gross domestic product (GDP) and diversifying markets are only two of the many important indicators for this,” Mr Appel, who met with DHL employees and customers, and visited several logistics facilities, said.
In October 2014, DHL announced investments totaling Euro 30.5m in South Africa, by both its Supply Chain (Euro 14.5 million investment) and Global Forwarding divisions (Euro 16m investment). These commitments signal the Group’s long-term growth plans for the region as they bring state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa.
“Staying close to the market and being responsive to customer needs are DHL’s fundamental principles. We have established world-class facilities in Sub-Saharan Africa to support our global network, and I am delighted to witness first-hand the sustained efforts of our employees to deliver best-in-class services. We are committed to Sub-Saharan Africa and will continue to build on our successful four-decade legacy in the region.” Mr Appel said.
For DHL Global Forwarding, the leading provider of air, ocean and road freight services, the Euro 16m facility, located at the Plumbago Business Park boasts 12,000 square meters of warehouse space and 5,500 square meters of office space. A TAPA ‘A’ certified warehouse, the new premises are a world-class facility in South Africa, strengthening the country’s growth capabilities as the hub for distribution into the region.
With a Euro14.5m investment, DHL Supply Chain’s 25,000m² multi-user warehouse facility caters to its technology client portfolio, as well as some key fast-moving consumer goods (FMCG) clients.
With Euro 56 billion realized in 2014, DHL employs 325,000 people in 220 countries and carries out operations in 51 African countries including Uganda, where it is the contracted distributor for beer giant, Uganda Breweries Limited (UBL).